S&P ups Michael Baker notes

S&P said it affirmed its B issuer credit rating on Michael Baker International LLC, which has divested its Sallyport division and used proceeds to repay its term loan balance.

The agency raised the issue-level rating on the company's $250 million senior secured notes due in 2023 to B from CCC+ due to the term loan repayment.

S&P revised the recovery rating on the notes to 4 from 6, indicating an expectation for average recovery (30%-50%; rounded estimate: 45%) in the event of a payment default.

“The affirmation reflects that despite meaningful debt reduction following its term loan repayment, using the proceeds from the sale of its Sallyport division, Pittsburgh-based Michael Baker International will have a lower earnings base as it focuses on E&C services,” the agency said in a news release.

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